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Shopping for a new home is an emotional experience. It is, however, also a business
transaction, and must be treated as such.
Three of the most devastating things that can go wrong are:
- Paying
too much
- Losing
a dream home to another buyer
- Buying
the wrong home
Avoid costly errors in your home buying experience with these tips on making the most of your home purchase:
Get the information you need
What price do you offer a seller? Is the seller’s asking price too high? A professional Realtor® can offer an
unbiased opinion on the value of a home, based on many factors and a great
deal of information. Without knowledge of the market, your offer could be too
much. Or worse, you could miss out on a great buying opportunity. What do you need and want in a home?
Sounds simple, but clearly identifying
your needs and bringing an objective view to home shopping leaves you in a much
better position. How much space do you really
need? Too small and you may feel like
you live in constant clutter. Too big
and maintenance may become too daunting.
Outline all of your priorities, and work on finding not just a great
home, but a great home for you. Get pre-approved for your loan
It only takes a few days to get financing pre-approval. When you are
shopping
for a home, this gives you more power. A seller is more likely to
consider an
offer from a serious buyer. Get a professional building inspection
For $300 - $500, a professional inspector will conduct a thorough inspection
of the home. Their expertise can mean the difference between uncovering major
flaws before or after you own a home. Make the final contract subject to the
report’s findings.
Get a property survey
Before the purchase is completed, an updated survey is essential. This
report
will indicate boundaries and structural changes (additions to the
house, a
new swimming pool, neighbor’s new fence which is extending a boundary
line,
etc.), and will guarantee that you are indeed getting what you pay
for. The title company usually will order this survey for you at your cost. However, check with the sellers to see if they have a current survey available that indicates all current improvements to the structure of the house. If they do, that could save you several hundred dollars in your closing costs! Check the title
Before you sign any document, be sure the property you are considering
is
free of all encumbrances. As a part of their services, the title company you choose will do a title search to ensure there are no liens,
debts,
undisclosed owners, leases or easements against the title.
Remember additional costs
Besides the funds for the purchase of a home, you’ll need funds for items
such as loan fees, insurance, legal fees, surveys, inspections, etc. When you speak with your lender, ask for a good faith estimate of your closing costs. This will give you a great idea of these types of charges. Your real estate agent can help you estimate the cost of building inspections and title company charges, such as the survey.
Take a deep breath
Before you sign, ensure that all documentation clearly reflects your
understanding and conditions of the transaction. Has anything been forgotten?
Don’t rush. You could lose money, financing, or even the sale if you attempt
to push things through too hastily.
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